Debt Rattle January 13 2018

[Raúl Ilargi Meijer]

Rembrandt van Rijn The flight into Egypt – a night piece 1651   • The Household Debt Ticking Time Bomb (IRD) • The Stock Market Never Goes Down A
[See the full post at: Debt Rattle January 13 2018]

[V. Arnold]

TAE appears to be the only website dedicated to economic truth.
Day after day; week after week; and month after month; Ilargi delivers facts on the ground about the real global economy.
And for those paying attention; it’s the most valuable information out there for those cognisant of economic reality, enabling them to make accurate decisions about their finances.
We, my wife and I, have followed a very similar path for more than 14 years; and with economic seat belts buckled; should be okay for the forseeable future.
It’s the unforseeable future that worries me…
With the crazies in charge, it’s impossible to know beyond tomorrow, IMO…

.

[zerosum]

A refugee, generally speaking, is a displaced person who has been forced to cross national boundaries and who cannot return home safely (for more detail see legal definition). Such a person may be called an asylum seeker until granted refugee status by the contracting state or the UNHCR[2] if they formally make a claim for asylum.[3]

21.3 million(16.1 million under UNHCR’s mandate and 5.2 million under UNRWA’s mandate; the total number of forcibly displaced persons is 65.3 million)

Is it possible for debt slave to escape their debts by becoming refugees?
Where can they go?

These are the Countries with the Biggest Debt Slaves, and Americans Are Only in 10th place

These are the Countries with the Biggest Debt Slaves, and Americans Are Only in 10th place
by Wolf Richter • Jan 22, 2017

Americans have been on a borrowing binge. To buy their favorite cars and trucks, they’ve loaded up on $1.14 trillion in auto loans. Young and not so young Americans are mortgaging their future with student loans that now amount to $1.28 trillion. Credit card and other debts are at $1.12 trillion. And mortgage debt stands at $8.82 trillion.

Canadian households in 5th place (via Trading Economics):
Australians are only in 3rd place (via Trading Economics):
Danish households clocked in at 123.6% of household debt to GDP is good for 2nd place,
And here is Number 1, the most glorious debt slaves of all, the country whose central bank is trying to manipulate down its currency by imposing steeply negative interest rates: Switzerland. And what has thrived in this zero- and negative-interest-rate nirvana is debt, with the household-debt-to-GDP ratio soaring over the years to 127.7% (via Trading Economics):

a big bout of inflation to help wipe out the purchasing power and burden of that debt. But that debt is a huge asset class with very low returns as it is, and if a big bout of inflation sets in, the holders of these assets – banks, pension funds, insurance companies, and other institutional investors – are going to take a licking, as are the hapless people (which is nearly everyone) that counted on the purchasing power of those cash flows.

[zerosum]

The year old article by Wolf Richter • Jan 22, 2017 is still true. The comments are still applicable.

The snow ball is still rolling down the hill and getting bigger.

[Dr. D]

Wow, that’s an excellent idea. We could all just trade countries and leave our debts behind.

Almost as good as South Park episode “Margaritaville” where Kyle takes on all credit card debts then defaults, leaving the town debt-free. https://en.wikipedia.org/wiki/Margaritaville_(South_Park)

Or the updated version, where Trump pardons all debtors. (still waiting!) Sign of the times where our attention goes.

[zerosum]

Just remember that the incoming cash flow of the lenders will also be zero.
You will also get zero cash flow from your old country.
If you out survive 90% of the population then you can pick the McMansion of your dream to restart/make a social/economic system.

[Author]

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